1. LFS user presentation EMCO
Katerina Aristodemou
EMCO Support Team – EMCO IG
LAMAS meeting
29 June 2016

2. EMCO – EMCO IG
EMCO is an advisory committee for Employment and Social Affairs Ministers in the Employment and Social Affairs Council (EPSCO) which plays an important role in the development of the European Employment Strategy.
The EMCO Indicators Group is the subgroup of EMCO responsible for the selection and development of indicators required to monitor the employment strategy

3. EMCO IG core business (1)
Preparation of the annual update of the Employment Performance Monitor (EPM)
Refinement of the indicators and methodology used under the Joint Assessment Framework (JAF)
Preparation of a contribution to the EMCO's report to be submitted to the October's EPSCO Council as input to the preparation of the AGS

4. EMCO IG core business (2)
Development/ evaluation of Indicator Frameworks for monitoring the Council Recommendations on
The Youth Guarantee
The integration of the long-term unemployed into the labour market
Analysis of the results of the data collections
Pursue work, in the area of employment, on improving the scoreboard of key employment and social indicators
Pursue work in the area of benchmarking employment policies

5. 1. Employment Performance Monitor (EPM) (1)
Is a joint EMCO - Commission report which summarising the JAF assessment
It is used to
Monitor the progress towards the ER target
Identify at a glance the main employment challenges for the European Union and for each Member State
It aims at providing a good overview of results both at MS level and in the EU

6. Employment Performance Monitor (EPM) (2)
It is adopted by the EPSCO Council
As form this year: October EPSCO Council
It will be accompanied by a horizontal summary paper
Aim: to feed in to the preparation of the AGS

7. Structure of the EPM PART I – EU dimension PART II – MS dimension
Progress towards the EU-28 employment rate headline target
Overview of Key Employment Challenges and particularly good labour market outcomes per Member State and per policy area
PART II – MS dimension
Progress towards the national employment rate target
Key indicators on labour market performance
Key employment challenges and good labour market outcomes
PART III – Reading from JAF modules
Annex
EPM dashboard
Statistical data
Benchmark

8. Progress towards the EU-28 employment rate headline target

9. Key Employment Challenges and particularly good labour market outcomes
Summary overview of
Key Employment Challenges
and particularly good labour
market outcomes
C=challenge
G=good labour market outcome

10. Identification of Key Employment Challenges (KEC) and Good Labour Market Outcomes (GLMO)
Step 1: Quantitative assessment based on JAF indicators – combination of levels and 3-y changes
Step 2: Qualitative assessment that qualifies and complements the findings from step 1. Use of other data sources
Step 3: Prioritising challenges and identifying key challenges and good outcomes per MS

11. KEC and GLMO Employment policy area Key employment challenge
Particularly good labour market outcome
1. Increase labour market particpation
Low participation of older workers
Low participation of non-EU nationals
2. Enhancing labour market functioning; combating segmentation
Increased risk of labour market segmentation, especially for the young
3. Active labour market policies
Above average long-term unemployment incidence despite significant investment in ALMP
4. Adequate and employment oriented social security systems
High tax wedge, especially for low wage earners
At-risk of In-work poverty below the EU average
5. Work-life balance
6. Job creation
7. Gender equality
8. Improving skill supply and productivity; Lifelong learning
Participation in LLL is below average and declining over time
9. Improving education and training systems
Share of adults with medium/high education is low
10. Wage setting mechanisms and labour cost developments
Decelerating but still above-average 3-year increase in nominal ULC. Real ULC growth is slightly below the EU average.

12. EPM dashboard
New in 2015
Includes the main indicators under the 10 JAF Policy Areas (mostly LFS based)
Aim: identify common EU "trends to watch" and "positive recent trends"
Focus: y-o-y changes and 3-y changes for each Member State and the EU

14. 2. Monitoring Council Recommendations
Two Indictor Frameworks developed within EMCO:
YG – adopted, 2nd data collection launched
LTU – under development
Indicators at 3 levels of monitoring
Aggregate level (mostly LFS based)
Direct level
Follow-up level
Integrated to JAF as modules
Results included in the EPM

15. 3.Scoreboard of Key employment and social indicators (1)
An analytical tool allowing better and earlier identification of major employment and social problems
Integrated part of the JER
Aim: Assessment of MS performance and identification of MS with problematic levels/changes
6 Indicators: UR
Youth unemployment: Youth UR, NEET rate
Real Growth in GHDI
At risk of poverty rate (18-64)
Inequalities S80/S20

16. Scoreboard of key employment and social indicators (2)
Assessment based on methodology jointly developed by EMCO IG – SPC ISG
Based on a combined assessment of MS performance using levels and y-o-y changes
Outcome
Summary table

18. Outstanding specific methodological issues
Developments of indicators for monitoring:
participation in the labour market for those furthest away from the labour market
skills mismatches and anticipation of skills needs
wage-setting mechanisms
labour mobility
Reconciliation of work and private life
Improvement of the NEEDCARE variable
Improvement of the NEET rate indicator
Variance estimates
Scoreboard
EPM dashboard

19. THANK YOU